Energy efficiency has been the most vital for future information and communication technologies (ICT). The call for energy-efficient technologies needs to make louder in order to reduce greenhouse gas emissions. Cloud computing has gained considerable attention as a promising approach for delivering ICT services by improving on utilization and consumption of data center resources. Cloud computing focus on hardware aspects needs to be extended to system operation and networking aspects. Today in the field of ICT, businesses, and companies care much about achieving a sustainable strategy for their operations. Cloud computing enables accessing computing resources such as applications, storage, movies, video games,storage and music on demand in such a manner that it is totally abstract to the clients and they have no idea from where they are receiving these contents. Energy efficiency refers to the practice of performing the same task as before but by consuming less energy. The environment is suffering from increasing hazardous energy emissions by large industries.IT sector has a deep impact on our environment along with consuming a notable amount of energy.The central theme of the research paper is to examine the pros and cons of cloud computing from energy efficiency aspect along with analyzing energy efficiency in case of Virtual Machine (VM) scheduling. The paper also discusses the working of three prominent scheduling algorithms, FCFS (First-Come-First-Serve), SJF (Shortest Job First), and RR (Round Robin).